The Government decided to limit the supply of under priced fuel to cut subsidies. People Who are earning more than Rs 10 lakh /annum will not get the subsidy for LPG from next month onwards.
In India, There is 16.35 crore LPG consumers and people are allowed to get 12 cylinders of 14.2 kg each at a subsidised rate Rs 419.26 as compared to market price which is Rs 608.
After the implementation of the PAHAL Scheme (DBTL), the subsidy is transferred directly to the bank accounts of the subsidy holders.
The Government also asked the wealthy households to voluntarily giving up LPG subsidy.
Till now around 57.50 lakh LPG consumers have opted out of LPG subsidy optionally after ‘GiveitUp’ campaign that was addressed by the Prime Minister.
The subsidy saved from the ‘GiveitUp’ campaign is being used for giving new connections to the BPL families under ‘Giveback’ campaign.
The primary focus of ‘Giveback’ campaign is to provide a clean fuel, to needy households by substituting the conventional fuels such as coal, kerosene, fuel wood, cow dung, etc.